chapter 14

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Chapter 14Understanding Labor Relations and Collective Bargaining

Fundamentals of Human Resource ManagementNinth Edition

DeCenzo and Robbins

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Introduction A union is an organization of workers,

acting collectively, seeking to promote and protect its mutual interests through collective bargaining.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Introduction

Impact of unionization Only about 13% of the private sector

workforce is unionized. Labor contracts typically stipulate:

wages hours terms and conditions of employment limit management’s discretion

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Introduction Union

Membership by Industry

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Why Employees Join Unions

Higher wages and benefits: The strength of large numbers and negotiating skills of professional bargainers give unions an advantage over individuals.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Why Employees Join Unions

Greater job security: Collective bargaining contracts limit management’s ability to arbitrarily hire, promote, or fire.

Influence over work rules: Unions represent workers and define channels for complaints and concerns.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Why Employees Join Unions

Compulsory membership Union shops require that all employees

hired into positions covered under the collective-bargaining agreement must join the union.

Agency shops require nonunion employees to pay an amount equal to union fees and dues.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Why Employees Join Unions

Compulsory membership Open shops allow union membership to be

totally voluntary. Maintenance of membership clauses require

union members to remain for the duration of the contract.

Dues checkoff provisions require employers to withhold union dues from members’ paychecks.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Labor Legislation

The Wagner Act Also known as the National Labor Relations

Act “Bill of rights” for unions, guaranteeing right

to organize and bargain collectively. National Labor Relations Board (NLRB):

determines bargaining units conducts elections prevents or corrects unfair labor practices

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Labor Legislation

The Wagner Act Unfair labor practices include:

interfering with an employee’s right to bargain collectively

refusing to bargain collectively with employee representatives

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Labor Legislation

Taft-Hartley Act Also known as the Labor-Management

Relations Act Specified unfair union labor practices.

coercion of employees to join the union refusing to bargain collectively engaging in illegal strikes and boycotts obtaining compensation for services not

performed

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Labor Legislation

Taft-Hartley Act Prohibited closed shops, secondary

boycotts, and gave the president power to issue a cooling-off period.

Created Federal Mediation and Conciliation Service (FMCS) to help labor and management settle disputes.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Labor Legislation

The Railway Labor Act Gave workers in the

transportation industry the right to bargain collectively and allowed congressional and presidential intercession in the event of an impasse.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Unionizing Employees

Union Organizing Process

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Unionizing Employees

Thirty percent of employees must sign authorization cards indicating their interest in having an election.

A representation certification (RC), a secret-ballot election is held If the union is accepted by a majority of eligible

voting workers, the union becomes the workers’ legal representative.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Unionizing Employees

Once the National Labor Relations Board certifies a union, each worker must abide by the negotiated contract.

Most organizations’ managements will try to influence workers against voting for union representation.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Unionizing Employees

Representation Decertification (RD) elections can be held to vote unions out.

RMs are decertification elections initiated by management.

Most agreements bar the use of decertification elections during the term of a contract.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Collective Bargaining

The negotiation, administration, and interpretation of a written agreement between two parties, at least one of which represents a group that is acting collectively, that covers a specific period of time.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Collective Bargaining

Objective and Scope of Collective Bargaining Contracts must be acceptable to management,

union representatives, and union membership. Four issues appear in all labor contracts. (The first

three are mandated by the Wagner Act) wages hours terms and conditions of employment grievance procedure

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Collective Bargaining

Collective Bargaining Participants Management is represented by senior

management for industrial relations, corporate executives, and company lawyers

In small companies, the president typically represents the company.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Collective Bargaining

Collective Bargaining Participants Union bargaining teams include an officer of

the local union, local shop stewards, and representation from the international/national union.

Government watches to ensure rules are followed.

Financial institutions set limits on the cost of the contract

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Collective BargainingThe Collective Bargaining Process Preparing to negotiate

Fact-gathering: Includes internal information (e.g., employee performance records, overtime) and external (i.e., data on what similar organizations are doing and the economy).

Goal-setting: Management decides what it can expect from the negotiation.

Strategy development: This includes assessing the other side’s power and tactics.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Collective Bargaining

The Collective Bargaining Process

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Collective BargainingNegotiating at the bargaining table Each side usually begins by publicly

demanding more than they are willing to accept.

More realistic assessments and compromises take place behind closed doors.

After oral agreement, a written contract is submitted to the union for ratification.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Collective Bargaining

Contract administration refers to the implementation, interpretation, and monitoring of the negotiated contract between labor and management. Information dissemination includes helping staff

and workers understand the new contract provisions.

Implementing refers to making the changes to comply with contract terms.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Collective Bargaining

Interpreting the contract and grievance resolution Grievance procedures are specified in the

contract and outline the steps for resolving complaints as quickly as possible by starting at the lowest level with the immediate supervisor.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Collective Bargaining

Interpreting the contract and grievance resolution Grievance (rights) arbitration is

typically the final step in the grievance process

Disputes that cannot be resolved are resolved by an arbitrator, or third party, whose decision is final.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Collective Bargaining

Sample Grievance Procedure

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Collective Bargaining

Failure to Reach Agreement Strikes versus lockouts

Economic strikes - labor and management cannot reach agreement before the current contract expires.

Wildcat strikes - unauthorized and illegal strikes that occur because of worker dissatisfaction during an existing contract.

Lockouts - when organizations deny unionized workers access to their jobs during an impasse.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Critical Issues for Unions Today

Union membership: Where have the members gone?

Union membership in the U.S. reached a high of 36% in the early 1940s; there has been a steady decline since then.

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Critical Issues for Unions Today

Union membership: Where have the members gone?

Reasons for decline in membership include: new concerns of a growing middle class greater diversity of the workforce growth of the service sector diminished financial resources of unions anti-union pressures resulting from increased

competitiveness layoffs of large numbers of union workers hiring of replacement workers for strikers

Fundamentals of Human Resource Management 9e, DeCenzo and Robbins

Critical Issues for Unions Today

Union membership: Where have the members gone? Unions are changing some of their

organizing tactics and may currently be gaining public support.

They also are placing more emphasis on the service sector.